What are the advantages and disadvantages of using a credit card?
The advantages of credit cards: it can relieve financial pressure; online consumption is convenient and fast; it can accumulate personal credit history. Using a credit card and paying back your loan on time can increase your credit limit.
This saves money. Many banks cooperate with merchants for their credit cards. For example, there will be cash back discounts for swiping your card, and there will be discounts for eating, watching movies, supermarket shopping, filling gas, car washes, etc. In addition, credit card points can be redeemed for some gifts in daily life, and even some lottery activities, and the points can be used as money.
Relieve financial stress. Sometimes money is needed urgently and there will be a certain amount of financial pressure to pay a large amount of money at once. If you have a credit card, you can use it to pay in installments and enjoy your favorite items in advance. The remaining money on hand can also be used for daily expenses and turnover.
Online consumption is convenient and fast. Many online malls or Taobao stores have opened credit card payment methods, catering to consumers' preference for using credit cards for consumption. Although there are no points for credit card online purchases, its convenient and fast payment method is liked by many people.
Accumulate personal credit history. Even if there is no big turnover demand, it usually costs money. If you use more credit cards and make your payments on time, you can increase your credit limit and credit rating. You will have a good credit record in the personal credit database of the People's Bank of China, and it will be much easier to get approval for a loan to buy a house or a car in the future.
Benefits and Disadvantages of Credit Cards
1. Benefits of Credit Cards:
You can use overdrafts without deposits, and you can enjoy 20-56 days of interest-free No interest will be charged for on-time repayment (most banks will charge an interest of 50,000 cents on the day of cash withdrawal, as well as a handling fee of RMB 2,000. Industrial and Commercial Bank of China will waive the handling fee for cash withdrawal and only charge interest).
Swiping your card when shopping is not only safe and convenient, but also provides points for gifts.
You can enjoy discounts when you use the card at the bank's designated merchants.
Accumulate personal credit and add a record of integrity to your credit file that will benefit you throughout your life.
It is accessible nationwide and you can withdraw money or make purchases by swiping your card at ATMs and POS machines with the UnionPay logo; (Note: Credit cards are only suitable for consumption and swiping. It is best not to withdraw cash. The handling fee for cash withdrawals is very high and very inconvenient. Cost-effective)
Swipe card purchases, collect existing points with some credit cards, and offer a variety of discounts and lucky draws throughout the year, so you can always be surprised as long as you use the card; (most credit card online payments do not have points, but online shopping payments Very convenient and fast)
Free mailed statements every month, allowing you to transparently control every consumption expenditure; (now promoting green environmental protection, paper statements can be canceled and changed to electronic statements)
The unique supplementary card function is suitable for couples to manage finances at the same time, or to control their children's financial expenditures.
The free choice of one card and dual currencies is available all over the world. Overseas consumption can be repaid in domestic RMB.
400 or the 5-digit short number starting with 9 is available 24 hours a day. Loss reports are effective immediately and there is zero risk of losing the card.
Have validity period: It is known that the validity period of domestic credit cards is generally three or five years.
Use third-party platforms (the domestic platform that supports credit card bill management is mainly Jujindou) for business cooperation to provide cardholders with preferential services.
2. Disadvantages of credit cards:
Blind consumption. Swiping a card is not like spending money one by one like paying with cash. Once you swipe it, you feel nothing, just a few numbers, which leads to blind consumption and money flowing like water.
Excessive consumption. Laptop installment, digital camera installment, smartphone installment, while enjoying your favorite items in advance, you also have to consider whether you are able to repay them.
The interest rate is high. If you don't know how to take care of your credit card and cannot repay the loan as scheduled when the final payment date comes, the bank will charge you high interest rates.
An annual fee is required. Credit cards basically have annual fees, but they basically have annual fee-free policies. For example, China Construction Bank only needs to swipe the card three times a year to waive it; but if you do not swipe the card the number of times specified by the bank in a year, you will be charged an annual fee.
Stealing.
By default, credit cards can be used for swiping purchases without a password, which makes it easy for others to use them when lost or stolen, causing unnecessary trouble or losses. However, in fact, credit cards can also be used for swiping purchases with a password.
Affect personal credit record. Long-term malicious arrears will naturally affect your personal credit record and even be blacklisted by the bank. If you want to apply for a loan to buy a house or a car from the bank in the future, you may be rejected by the bank.
Repayment is troublesome. You have to go to the bank every month, which is often overcrowded, and not everyone can repay online.
Logout is troublesome. CCTV once reported that a cardholder once paid off all the outstanding balances and canceled his credit card but still received a bank statement several months later. What happened after that made him miserable. This article titled "Credit Cards That Can't Be Repaid" revealed Overcome the shortcomings of today’s credit cards.
Although there is an interest-free period for credit cards, it is only for card consumption. There is no interest-free period for cashing out, and handling fees are also charged.
The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis. However, the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, high interest will be charged. , generally an interest of 0.05% per day.
Reference material: Credit card
What are the advantages and disadvantages of credit card?
The advantages and disadvantages of applying for a credit card are:
The advantages of credit card : Compared with ordinary bank savings cards, the most convenient way to use credit cards is that they can make ordinary purchases without cash in the card. In many cases, you only need to return the consumed amount on schedule. You can make overdraft purchases without depositing. It is not only safe and convenient to swipe your card when shopping, but you can also get points as gifts. You can enjoy discounts when you use the card at the bank's designated merchants.
Disadvantages of credit cards: The invention of credit cards is like a double-edged sword, which can solve the temporary economic crisis. However, the purpose of banks issuing credit cards is to make money. Once the interest-free repayment time is exceeded, high fees will be charged. The interest on the amount is generally 0.05% per day. Developing the habit of blind consumption leads to blind consumption and spending money like water.
If you cannot repay on time, the bank will charge high interest. Long-term malicious arrears will naturally affect your personal credit record and even be blacklisted by the bank.
The advantages and disadvantages of using a credit card
The advantages of using a credit card:
(1) You don’t need to bring too much cash when traveling to other places, it is convenient to use a credit card.
(2) You can pay money in advance to buy things without paying immediately.
(3) If you need immediate cash flow, you can take your credit card to a bank or ATM to withdraw cash immediately.
(4) If you apply for a credit card, you can waive the annual fee and get gifts or supermarket coupons.
(5) There is no need to pay back the money immediately and you can earn bank interest.
Disadvantages of using credit cards:
(1) It is troublesome to lose your credit card. You have to call the card center immediately to intercept the card, and you are afraid of someone stealing it.
(2) If you cannot pay back the money if you miss the budget, you will have to pay high interest.
(3) It is easy to misuse money without thinking, or even overspend.
(4) Most of the gifts after applying for the card are used or damaged easily.
(5) If the number of cards exceeds the number of cards (that is, the money owed from this bank will be repaid by another bank repeatedly)
The amount owed exceeds the number of cards. The more accumulated you are, the more debt collection agencies will come to your door if you cannot pay back the money. , Advantages of using a credit card:
(1) You don’t need to bring too much cash when traveling to other places, it is very convenient to use a credit card.
(2) You can pay money in advance to buy things without paying immediately.
(3) If you need immediate cash flow, you can take your credit card to a bank or ATM to withdraw cash immediately.
(4) If you apply for a credit card, you can waive the annual fee and get gifts or supermarket coupons.
(5) There is no need to pay back the money immediately and you can earn bank interest.
Disadvantages of using credit cards:
(1) It is troublesome to lose your credit card. You have to call the card center immediately to intercept the card, and you are afraid of someone stealing it.
(2) If you cannot pay back the money if you miss the budget, you will have to pay high interest.
(3) It is easy to misuse money without thinking, or even overspend.
(4) Most of the gifts after applying for the card are used or damaged easily.
(5) If the number of cards exceeds the number of cards (that is, the money owed from this bank will be repaid by another bank repeatedly)
The amount owed exceeds the number of cards. The more accumulated you are, the more debt collection agencies will come to your door if you cannot pay back the money. , Reference: me,
What are the advantages and disadvantages of applying for a credit card?
1. Advantages of applying for a credit card:
1. You can use overdraft for consumption. When you have insufficient funds, you can swipe the card for consumption or withdraw cash.
2. Enjoy the convenience of installment. After a large purchase, you can pay it back slowly in installments.
3. Convenient travel and enjoy discounts. There are many different types of credit cards now. Some have the function of taking the subway and bus, some have discounts for booking air tickets and hotels, and some are convenient for converting foreign exchange when going abroad.
4. It is convenient for financial management and investment. Credit cards have an interest-free period of up to 56 days. During the interest-free period, users do not have to pay interest. Users can use their own money for investment.
5. Points can be redeemed for items. Generally, you will get points when you use a credit card to purchase items. The points can be used for shopping in the bank points mall.
2. Disadvantages of applying for a credit card:
1. After applying for a credit card, a credit report will be submitted. Once your credit card is overdue, an overdue record will appear on your credit report, which will affect own credit.
2. It will be stolen. If your credit card is stolen by others, it can easily be stolen and cause losses to yourself.
3. Let your consumption become irrational. If you use a credit card to consume without having to pay it back immediately and pay it back next month, it is easy for people to consume blindly.
Credit limit
The credit limit refers to the maximum overdraft limit that the bank gives you when approving your credit card. You can only spend within this limit. If you exceed the limit, This limit cannot be used for regular card payments.
The credit limit is determined based on a comprehensive evaluation based on the information you filled in when applying for a credit card and the relevant supporting documents provided. The principal card and supplementary card*** share the same limit. Under normal circumstances, the RMB limit and the US dollar limit in a dual-currency credit card can be converted to each other. For example, if your limit is 30,000 RMB, when you use the card overseas, your credit limit is approximately equivalent to 5 ,000 USD.
The credit limit will be adjusted regularly by the bank, but you can proactively provide relevant proof of financial resources to request adjustment of the credit limit. In addition, when you need a higher limit within a certain period of time when traveling abroad, moving to a new home, etc., you can request to increase the temporary credit limit.
Transaction date
The date when the cardholder actually used the card for transaction.
Accounting date
Also known as the entry date, it refers to the date when the card-issuing bank records the transaction amount into the credit card account after the cardholder uses the card to make a transaction, or the card-issuing bank records the payment according to relevant regulations. Agree on a date when the relevant charges will be credited to their credit card account. The general billing date is the day after the cardholder's actual consumption date. For example, if you shop on December 1st, the general billing date is December 2nd.
Billing Date
The billing date refers to the card-issuing bank’s regular monthly summary of various transactions and expenses incurred in the cardholder’s credit card account in the current period, and the settlement of interest and calculations. The date on which the cardholder should repay the amount in the current period.
Repayment Date
The date when the cardholder actually repays the credit card account to the bank.
Interest-free repayment period
For non-cash transactions, the period from the bank accounting date to the due repayment date is the interest-free repayment period. The interest-free repayment period is as short as 20 days and as long as 56 days. During this period, as long as you repay in full the amount due on the current period's statement, you will not have to pay any interest on the funds advanced by the bank to the store for non-cash transactions (cash advances do not enjoy the interest-free discount).
Repayment due date - the last date specified by the card issuing bank when the cardholder should repay the entire repayment or the minimum repayment amount.
Closing your credit card account is something you must do if you no longer intend to use your credit card. If you do not cancel your account, the bank will charge you the annual fee for your credit card.
As long as there is no overdraft on the card, you can apply for account cancellation at any time.
If the card has not expired, you need to apply first and go to the bank to cancel the account after a certain number of days; if the card has expired and the account balance is zero, you can go directly to the designated bank outlet to cancel the account. Account procedures. When canceling an account, you should bring the original valid identity document and card. If it is inconvenient for you to go through the account cancellation procedures, someone else can do it for you. The agent must hold a power of attorney written by the principal (in person) and bring the original valid identity document to handle the account cancellation business.
If your card has not expired when canceling a credit card account, some banks stipulate that you need to go to a designated outlet to handle the card collection business, and then go through the formal account cancellation procedures after a certain period of time (up to 30 days) .
This is mainly because if the cardholder has made a manual card pressing transaction before canceling the account, the cardholder has already canceled the account before the merchant has submitted the card pressing slip to the bank for entry into the account. , so the bank cannot liquidate regularly; on the other hand, if the cardholder consumes or withdraws cash overseas, it may take a few days to liquidate. If the account is closed immediately, it will also affect the bank's normal liquidation.
That’s it for the introduction of the advantages and disadvantages of using credit cards.